Sensex down 400 pts, Nifty near 26,050: Fall in banking heavyweights among key factors behind market decline

Stock market today: Sensex, Nifty see profit booking. The equity benchmark indices extended their decline on Tuesday as weakness in the rupee, continued foreign fund outflows and profit-booking in private bank stocks weighed on investor sentiment. The Sensex fell 380.02 points to 85,261.88 in early trade, retreating after touching an all-time intra-day high in the previous session. The Nifty slipped 98.3 points to 26,077.45. ICICI Bank, HDFC Life Insurance Company and InterGlobe Aviation were among the major laggards in the Nifty50 index, declining up to 2 percent, while Dr. Reddy's Laboratories and Asian Paints were among the major gainers, rising up to 1 percent. Key factors behind market decline 1) Decline in Indian currency: The rupee opened lower at 89.70 against the US dollar and later touched a record low of 89.85, down 32 paise from its previous close. Traders said the fall was driven by strong dollar demand from corporates, importers and foreign portfolio investors, along with elevated crude oil prices. 2) Persistent FII selling: Foreign Institutional Investors sold equities worth Rs 1,171.31 crore on Monday, marking the third straight session of outflows this month. Persistent FII selling typically puts pressure on domestic equities as it signals reduced overseas appetite for risk assets. Stock Market LIVE Updates 3) Weak global cues: Weak trends in global markets also added to the cautious mood. Key Asian indices, including Shanghai’s SSE Composite, traded lower, while US markets ended Monday’s session in the red. Technical View Anand James, Chief Market Strategist at Geojit Financial Services, said momentum was muted in the previous session, with buyers stepping back and allowing the index to drift lower. He said bulls may attempt to regain strength if the Nifty moves back into the 26,110–26,060 range. Failure to hold this band could open the door to 25,860–25,700 or even 25,300, though such a sharp decline appeared less likely on Tuesday.